China on the Run-History in the making China unveils boldest reforms in 3 decades
China unwrapped its boldest set of economic and social reforms in nearly three decades on Friday, relaxing its one-child policy and further freeing up markets in order to put the world’s second-largest economy on a more stable footing.
The sweeping changes helped dispel doubts about the leadership’s zest for the reforms needed to give the economy fresh momentum as three decades of breakneck expansion shows signs of faltering. Pricing of fuels, electricity and other key resources now a source of major distortions-would be mainly decided by markets, while Beijing also pledged to speed up the opening up of its capital account and further financial liberalization.
“The reforms are unprecedented.” Said Xu Hongcai, senior economist at the China Centre for International Economic Exchanges, a well-connected Beijing think tank. “Reforms in 1990s were limited to some areas, now reforms are all-round.” President Xijinping and Premier Li Kequang, appointed in March, announced breakthroughs in social policy, pledging to unify rural and urban social security systems and to abolish controversial labour camps, the official Xinhua news agency reported, citing the document. The plans, more comprehensive and specific than initially thought, also dispelled concerns that Xi would need more time to take full charge of China’s vast party and government bureaucracy.
If Mr. Xi is able to manoeuvre his country on a new growth trajectory, even a sustained 8-9% growth rate, he would ensure China would become the world’s wealthiest “NATION” into decades. This would be both a challenge and an opportunity for India. China’s economy is now a major pillar of the world economy. If Beijing stumbles, New Delhi will suffer as well. Yet there is also no reason to believe a powerful China will be hostile to India. The worst case scenario is most likely if India remains in its present economic doldrums.
China is on a path of progress. Economic performance or activity is a dynamic process. This requires a change every 20-30 years, looking for more aggressive & progressive policies. China is a unitary functioning of the Govt, though a collective leadership guides the desting of the Nation (China). We have world class economist (Manmohan/Chidambram/Montek Ahluwalia (Dy Chairman of Planning Commission) Raghuraj Raman (Gov RBI). But our polity has nosedived to a new low. Politics has become disruptive, destructive and divisive day by day. The objective is just to garner votes and seek power. Nobody talks about changing India for better. Only slogan mongering.
Wake up India